When interest rates are high, income investors typically flock to a treasuries - as we've seen happen over the last 24 months. But now that rates are on the way down, dividend stocks are sure to become more popular.
So which ones do we choose? When choosing a dividend stock, I prefer to start with the “top performers.” The S&P 500 has a historical average return of roughly 10-11% annually. S&P 500’s Dividend Aristocrats index registered a similar return 9.3% year-to-date- not including dividends. 9.3% takes all Dividend Aristocrats into account. If we look close enough, there have been stand-out performers that blow past the industry averages. More importantly, based on analyst price estimates and technical analysis, we can find targets that still have some gas left in the tank. So, here are the top-performing, buy-rated Dividend Aristocrats right now.
How I Came Up With The Following Stocks
This analysis was done on Barchart’s Stock Screener tool, with a dash of cross-functionality using Watchlist and Opinion. Here are the filters I used:
- Overall Buy/Sell/Hold Signal: Buy only. This filter allows me to look for companies with a Buy rating from Barchart Opinion. Opinion combines thirteen technical analysis tools to identify trading opportunities in the short, mid, and long term.
- YTD Percent Change: Left blank so I can sort the results with it.
- Current Analyst Ratings: 3.5 (Moderate Buy) to 5 (Strong Buy).
- Watchlists: Dividend Aristocrats. This filter allows me to access single or multiple watchlists.
After running the screen, I got 27 results. I arranged them from highest to lowest YTD return with a click of the header, and lo and behold, shown are the top-performing Dividend Aristocrats this year. So let’s talk about the top three, starting with number one:
Walmart (WMT)
Walmart had always been the go-to retailer for low-priced—and, by false implication, low-quality—bargains. However, things are changing, as the company’s recent offerings are now attracting customers from higher tax brackets. Q3’25 also saw marked volume improvement in both in-store and delivery sales, according to CEO Doug McMillon.
As a result, WMT stock has had a significant run in 2024, returning 80.29% YTD. However, its yield is a bit lackluster, at 0.88% based on an 84-cent annual rate. Despite that, analysts remain optimistic about the stock, rating it a 4.72 average score, with a high target price of $110, and Barchart Opinion rates it a Strong Buy.
If you’d invested in WMT at the start of the year, you’d be up 81% in total. If you invest now and analyst projections turn out to be right, you’d still be up more than 17%- plus the dividends. And who knows? Walmart’s improving performance might drive prices up even more.
Pentair (PNR)
Pentair Ltd. is a multinational industrial company specializing in water treatment, water management, and fluid control technologies. The company provides water solutions for residential, commercial, agricultural, and industrial customers. Its product lines include heaters, filters, maintenance parts, and more, while its industry-specific solutions are comprehensive, including everything a business or individual might need for their water systems.
PNR stock is up 48.93% YTD and has been on a bull run since the end of 2022. Analysts still see further growth for the stock, giving it an average score of 4.21 (moderate buy) and a high target price of $126. It also has a Strong Buy rating from Barchart Opinion, with excellent prospects according to its moving averages across different timelines.
However, Pentair’s dividend yield is a bit low—23 cents quarterly per share, translating to a 0.85% yield. Given that it’s a Dividend Aristocrat, though, you can expect dividend payouts to increase year after year.
Cincinnati Financial (CINF)
Insurance is a touchy subject right now, but the entire sector is not a lost cause from an investment standpoint. Some, like Cincinnati Financial, can still balance client needs and its bottom line. The company is one of the most trusted insurers in the country and boasts a 92% policyholder satisfaction rate based on data from 2020 to 2022. It offers property, commercial, personal, and life insurance and specialized and timely coverage for natural disasters, fall and winter events, water damage, and more.
Cincinnati Financial offers the highest yield on this list: 2.13% based on a $3.24 annual dividend. The stock is also up 47.07% YTD, which means you’d have a total return of nearly 50% if you invested in CINF at the start of 2024.
But don’t feel like you’ve missed the boat just yet. CINF has an average score of 3.90 from analysts and has a high target price of $171. Meanwhile, Barchart Opinion still ranks it as a Strong Buy.
Final Thoughts
Dividend investing doesn’t need to be a stagnant strategy. With the right data, you can identify potential winners that can boost your portfolio value with both capital appreciation and dividends.
